A stock with high roe and low valotility

Screening Filters

1. Market Cap ≥ $10,000,000,000

   • Purpose: Focus on large, established companies.
   • Rationale: McDonald’s (MCD) is a large-cap stock. Large caps tend to have:
     • More stable earnings and business models
     • Better liquidity and analyst coverage
     • Typically lower volatility than small or micro caps

   This aligns with the “low volatility” aspect of your question by steering the screen toward mature, less erratic businesses like MCD.

2. Beta: LowRisk

   • Purpose: Explicitly capture stocks with relatively low share price volatility versus the overall market.
   • Rationale:
     • Beta measures how much a stock moves relative to the market (1 = moves with the market; <1 = less volatile).
     • By choosing a “LowRisk” beta category, the screener is directly targeting stocks that historically exhibit lower volatility.

   This filter directly addresses your “low volatility” criterion for MCD.

3. Region: United States

   • Purpose: Limit results to U.S.-based companies.
   • Rationale:
     • McDonald’s is a U.S. company, so to see whether it fits into a peer group of similar names, the screen is constrained to the same region.
     • This keeps the comparison relevant in terms of accounting standards, market structure, and investor base.

4. Exchange: XNYS (New York Stock Exchange)

   • Purpose: Restrict results to stocks listed on the NYSE.
   • Rationale:
     • MCD trades on the NYSE.
     • Focusing on this exchange helps match the listing venue and ensures we’re comparing MCD to similarly listed, typically more established and liquid U.S. names.

5. Net Margin ≥ 10%

   • Purpose: Screen for companies with strong profitability.
   • Rationale:
     • High net margins suggest strong pricing power, cost control, or an advantaged business model.
     • Companies with solid margins often have more stable earnings, which can support both high returns on equity and lower perceived risk.

   While your question is about ROE and volatility, this filter tightens the set to fundamentally strong, profitable firms that are more likely to sustain high ROE.

6. Return on Equity (ROE) ≥ 20%

   • Purpose: Directly capture “high ROE” companies.
   • Rationale:
     • An ROE threshold of 20% is quite demanding and commonly viewed as “high” in fundamental analysis.
     • By using this cutoff, the screener is explicitly ensuring that any stock passing, including MCD if it appears, qualifies as a high-ROE name.

Why Results Match Your Question

• You asked whether MCD has high ROE and low volatility.
• High ROE is directly addressed by the ROE ≥ 20% filter (and supported by the profitability filter, net margin ≥ 10%).
• Low volatility is captured by the LowRisk beta filter, and further supported by focusing on large-cap U.S. NYSE-listed stocks, which are generally more stable than smaller, thinly traded names.

Together, these filters construct a universe of stocks that share the key characteristics you’re asking about for McDonald’s: high return on equity and relatively low volatility within a large, established U.S. company context.